The First Thing to be Done

What good will it do for us to win all of our wars, what good will it do for us to be given stable jobs, what good will it do for us to get health care if our money is no good?

The most important thing our government must do now is to guarantee the stability of our money.

And by "money" I don't mean merely our currency. Money in all of it's forms includes cash, credit cards, electronic transfers, and monetary notes of all kinds. The government only creates some of them. It guarantees the safety of only some of them.

What the government must do is to provide an insurance for all forms of cash.

Banks, money market funds, retirement funds, mortgage investment notes, and all other financial instruments must be protected against loss of principal.

Businesses will accept the potential loss of income from these tools if they do not also lose what they start with.

With this acceptance will come the availability of money which is presently hoarded in "safe" storage. This loosening of money will allow the formation of new money by entrepreneurs and savers.

How can the government do this?

The U.S. government can perform this very necessary task by providing an insurance program to every investment. This program will guarantee that no investor in any of these monetary forms will lose any of his principal.

The program will be paid for like all insurance programs - by a surcharge added on to the principal to establish the total initial buy-in for any of these investments.

Every cash investment must be insured. That means the insurance must be mandatory. Voluntary means no one pays for it. And the insurance must be funded by enough money to actually cover all of the at risk items. It is not sufficient to insure less than 100% of all cash investment items or less than 100% of all of the value of those investments.

What will happen as the result of this?

If cash is available, all other kinds of investment can be financed.

If cash is available, all government programs can be paid for.

If cash is available, jobs are inherently stable.

So we must conclude: Stabilize money now.